Can I invest a lumpsum in debt funds? Or is SIP a better option for debt investments?
- Suresha Kodapala
Systematic Investment Plan (SIP) is a preferred method to invest in equity schemes because it imparts discipline and averages the cost of purchase over a period of time. Also, regular investments can rule out the possibility of committing all the money during a market peak. However, these things don't apply to debt schemes as they are not that volatile or risky. In short, it is perfectly okay to invest a lump sum in debt schemes.